Managing quality, supplier selection, and cold-storage contracts in agrifood supply chain through stochastic optimization
Soto Silva, Wladimir Eduardo
González Araya, Marcela Cecilia
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The quality of such processed agrifood products as dehydrated apple is related to the quality and variety offresh harvested products and connected with wastage reduction throughout the agrifood supply chain. Forthis purpose, cold-storage management is important to avoid or mitigate the quality decay of fresh prod-ucts stored in refrigerated systems. This paper explores the benefits of a two-stage stochastic programmingmodel for product quality through the selection of producers and the management of cold storage to miti-gate deterioration and guarantee the maintenance of quality. A case study with real data from an agribusinesscompany is presented in the case study to illustrate and assess the suitability of the stochastic approach. Un-certainty regarding the conversion rate of fresh apples into the final dehydrated product and the purchasecost of the apples in the system are represented through scenarios generated from historical data. Recourseactions include the purchase of additional fruit and renting of additional cold stores to meet the demand.Based on the different scenarios, the value of the stochastic solution shows that modeling and solving theproposed stochastic model minimizes costs by an average of around 6.4%. In addition, the expected valueof perfect information demonstrates that using a proactive strategy could reduce costs by up to 9%. Theseresults ensure the applicability of this model in practice before and during the harvesting season for planningand replanning as uncertainty is revealed under a rolling horizon.
Is part ofInternational Transactions in Operational Research, 2021
European research projects
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